Texas House Bill HB3335

Texas 2021 - 87th Regular

Caption

Relating to the charging of higher prices by retail electric providers during a declared disaster.

Impact

If enacted, HB3335 will amend existing statutes within the Business and Commerce Code, adding language to explicitly define and prohibit price gouging in the context of electricity supply during disasters. The bill reinforces the state’s commitment to consumer rights by ensuring that residents are treated fairly and equitably during times of crisis. It adds a safeguard against potential abuses by retail electrical providers, who might inflate prices under the guise of supply and demand.

Summary

House Bill 3335 focuses on regulating the pricing strategies of retail electric providers during declared disasters. Specifically, it aims to protect consumers from exorbitant charges by disallowing prices that exceed 200 percent of the average market price for electricity charged in the four quarters preceding the disaster declaration. This is crucial for ensuring that residents and businesses are not subjected to punitive costs during emergencies when utility services are essential.

Contention

There may be points of contention related to how this law could affect market dynamics and the operational capabilities of retail electric providers during emergencies. Critics might argue that imposing such restrictions could discourage providers from making necessary investments in infrastructure or disaster preparedness. Conversely, supporters argue that the well-being of consumers should take precedence, and the law is a necessary intervention to prevent exploitation when consumers are most vulnerable.